I was asked by one of our clients if now was a good time to buy property. Unfortunately this client was caught up with the global financial crisis a few years back and they were unsure if now was a good time for investment property financing.
I understand there is some hesitancy to jump back into buying an investment property by people burnt by the GFC. However, a lot about investment property financing was also learnt from it. Outlined below are ten simple but important pieces of advice I provide to our clients when they are unsure if it is the time to buy property. If you always keep these points in mind when buying an investment property, no matter what market you invest in, you are giving yourself the best possible opportunity for success:
- Don’t panic – keep your focus on the longer term to avoid knee jerk decisions regarding investment property financing.
- Be proactive – to ‘wait and see’ can cost you money whereas flat markets provide opportunities so don’t hesitate for too long or you might miss out on the time to buy property.
- Don’t speculate – do your research and due diligence and make sure you base your decisions on your circumstances and the merit of the property
- Always have a financial buffer – cash flow is vital in any market, especially when buying an investment property.
- Expect the unexpected - always have property insurance which provides your investment property financing with comprehensive protection
- Timing isn’t everything – it’s not when you buy, but what you buy
- Always look after your tenants
- Never rely on old data – twelve months is a long time in property so always base your decisions on the most current information available when deciding on the time to buy property.
- Always give yourself time to buy property – when buying, building, securing finance, finding tenants or selling. Don’t rush or put yourself under pressure. Take your time and do it right;
- Don’t be negative – the future is always uncertain so as long as you stick to the fundamentals, property investment has the potential to yield positive results
Although daunting, you should never be afraid to jump back into buying an investment property and if you’re looking for any extra advice or information on investment property financing, our team of Property Investment Specialists will be only too happy to help work through any concerns or fears you may have.
Plus, our Assist Kit provides all the tools you need to get started on buying an investment property.
If you have a question regarding investment property financing, I'd love to hear from you at AskPeter@investorassist.com.au